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Keywords

damageslease

plaintifftrialwillleasenovation

Related Cases

Brown v. DuBois, 40 Ohio Misc.2d 18, 532 N.E.2d 223

Facts

The landlords brought an action against the tenants for removing property from the leasehold after the lease ended. The tenants had installed wall-to-wall carpeting and track lighting in a retail space. The lease allowed for the removal of trade fixtures, but the landlords argued that the carpeting had become a fixture and could not be removed. The tenants vacated the property by the lease's end, and the landlords claimed damages for the carpet's removal.

Upon trial, the evidence demonstrated that the tenants had installed approximately five rooms of wall-to-wall carpet and certain track lighting appliances.

Issue

Whether the track lighting appliances and wall-to-wall carpet are fixtures or whether they have retained their identity as chattels or personalty.

The issue before the court is whether the track lighting appliances and wall-to-wall carpet are, in fact, fixtures or whether they have retained their identity as chattels or personalty.

Rule

A tenant retains the right to remove articles placed in or on the leasehold during the lease term if they were installed to enhance the tenant's use or enjoyment of the premises. The determination of whether an item is a fixture involves considering its annexation to the realty, its appropriation to the use of the realty, and the intention of the party making the annexation.

The general rule has been stated that a tenant retains the right to remove articles which the tenant places in or on the leasehold during the term of the lease, which items were so placed to enhance the tenant's use or enjoyment of the premises.

Analysis

The court found that the track lighting was specifically adapted for the tenant's business and thus qualified as a trade fixture that could be removed. In contrast, the carpeting was securely attached and intended as a permanent improvement, leading the court to classify it as a fixture. The court also considered the lack of economic loss to the landlords and the tenants' intention to enhance the property.

Considering the evidence in the case at bar in light of the Teaff and Masheter standards, the court makes the following findings of fact: (1) that the carpeting at issue was securely attached to the realty by means of 'tackless strips' which were nailed to the floor; (2) for the purpose of enhancing the appearance and comfort of the leased property; (3) there seemed to be little difficulty removing the carpet; (4) the plaintiffs failed to demonstrate any actual economic loss resulting from the removal although the removal caused some damage to the floors of the building; (5) that retention of the carpet by the lessors would allow them only a slight gain due to the age and use of the carpet; (6) and it would also appear from the evidence that neither party contemplated the retail establishment opening its doors to the public without some renovation, repair or covering of the original floors.

Conclusion

The court ruled that the carpeting was a fixture and could not be removed by the tenants, while the track lighting was a removable trade fixture. The landlords were awarded $925 in damages for the carpet's removal.

Consequently, the court has arrived at the following conclusions: (1) that the carpeting at issue was of a nature properly described as a chattel at time of purchase; (2) that it was susceptible of either continued existence as personalty, or of becoming a permanent fixture; (3) that the tenants intended the carpet as a permanent improvement to the property; (4) that lessors will receive no windfall because the gain was anticipated; (5) that upon installation said carpet became a fixture and, therefore, was not subject to removal by the tenants.

Who won?

Landlord, because the court found that the carpeting was a fixture and awarded damages for its removal.

Judgment for landlord.

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